Cryptocurrency exchange Kraken has launched a new product called DeFi Earn, designed to offer users a straightforward way to access decentralized finance (DeFi) yields directly within the Kraken app. Announced on January 26, 2026, the service allows users to deposit cash or stablecoins—which are converted to USDC if necessary—and select from three automated vault strategies: Balanced, High (or Boosted), and Advanced, with yields of up to 8% APY.
The feature is powered by embedded wallet infrastructure from Privy, eliminating the need for seed phrases or manual transaction signatures. The vaults themselves are built by Veda Labs on the Ink Network—Kraken's proprietary Ethereum Layer 2 (L2) blockchain. Risk oversight is provided by Chaos Labs and Sentora, which manage the Balanced/Boosted and Advanced vaults, respectively.
Rewards are generated from actual borrower demand on established DeFi protocols including Aave, Morpho, Tydro, and Sky Ecosystem, with no token subsidies or temporary boosts. Kraken charges a 25% fee on rewards only. Withdrawals are typically instant, though brief delays can occur during periods of low protocol liquidity.
DeFi Earn is initially available in 48 U.S. states, Canada, and the European Economic Area, with plans to expand to more regions. The launch is part of Kraken's broader strategy to bridge centralized and decentralized finance, following recent products like Auto Earn, commission-free stock trading, and the Krak Card.
The underlying Ink Network has seen significant growth, currently ranking 14th by Total Value Locked (TVL) with $534 million. Its stablecoin market cap stands at $595 million, dominated 43% by Circle's USDC. This new product is expected to further boost the ecosystem's growth by simplifying onboarding and improving the user experience for accessing DeFi yields.
